Equity

9 Months Ended

Sep. 28, 2024

Equity [Abstract]

Equity

Equity

Earnings per share

Basic earnings (loss) per share is determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all dilutive potential shares of common stock had been issued. Dilutive potential shares of common stock consist principally of unvested restricted stock units. Computations of diluted earnings per share should not give effect to any dilutive potential shares of common stock that would have the effect of increasing earnings per share (or decreasing the loss per share). Therefore as a result of the net loss for the quarter ended September 28, 2024, all potentially dilutive shares have been excluded from the calculation of dilutive earnings (loss) per share. For the year-to-date period ended September 28, 2024, the Company had approximately two million dilutive shares and zero anti-dilutive shares.

On the Spin-Off Date, Kellanova distributed 85,631,304 shares of the Company's common stock to Kellanova's shareowners in connection with the Spin-Off. For comparative purposes, weighted average shares outstanding for the quarter and year-to-date period ended September 30, 2023 have been retroactively recast to reflect the effects of the changes in equity structure resulting from the Spin-Off and assume the same basic weighted average shares as of the Spin-Off Date. For periods prior to the Spin-Off, it is assumed that there are no dilutive securities as there were no stock-based awards of the Company outstanding. Refer to the Unaudited Consolidated Statement of

Income for basic and diluted earnings per share for the quarters and year-to-date periods ended September 28, 2024 and September 30, 2023.

Comprehensive income

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareowners. Other comprehensive income consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges, which are recorded in interest expense within the statement of income, upon reclassification from Accumulated Other Comprehensive Income ("AOCI"), adjustments for net experience gains (losses), prior service credit (costs) related to employee benefit plans, which are recorded in OIE within the statement of income, upon reclassification from AOCI. The related tax effects of these items are recorded in Income taxes within the Unaudited Consolidated Statement of Income, upon reclassification from AOCI.

AOCI as of September 28, 2024 and December 30, 2023 consisted of the following:

(millions)	September 28, 2024		December 30, 2023
Foreign currency translation adjustments	$	(41)	$	(35)
Cash flow hedges — net deferred gain (loss)	(2)		—
Postretirement and postemployment benefits:
Prior service credit (cost)	7		7
Total accumulated other comprehensive income (loss)	$	(36)	$	(28)